The aim of this paper is to empirically examine the relationship between saving and investment for 6 Middle East and … Model. The long run estimation reveals causality between investment and saving for the entire sample. The Granger causality … tests confirm this result and validate the presence of bidirectional causal relationship between investment and saving …

justified by the idea that government deficits reduce national savings, which ultimately reduces domestic investment and economic … growth. However, this idea that domestic savings must necessarily increase if investment increases cannot be taken for … prohibition as a means to revitalize investment. This study raises the question of domestic savings-investment causality in the …